Arweave
Last updated
Last updated
IPFS is a popular P2P network for sharing data in a decentralized way, but it lacks one feature: Permanence. Content on the IPFS network can disappear. If no one hosts the data, it could be lost forever. The Arweave blockchain can now store and pin files onto IPFS and keep them available permanently. This is why our GVO / DDA contracts use Arweave and so unlike 90% of NFTs they will be available 4ever on blockchain
Arweave set out to resolve the above issues. The solution was simple. Incentivize the nodes to hold the data permanently. It is done by users paying a one-time fee in AR (the native Arweave token) to the nodes.
The formula used for the fee calculation in essence incentivizes the nodes to hold the data for well over 200 years. The fee takes into calculation the rising price of AR over time alongside the decreasing price of physical storage. And on top of that, the Arweave team deliberately underestimated the decreasing cost of storage over the years in order to play it even safer.
On top of that, the nodes are periodically asked for a random piece of data from the entire Arweave network. If the node can verify they are storing that piece of data they get awarded extra AR tokens. This means that every single node on the network benefits from holding a copy of the entire data.
Generally speaking, IPFS has its advantages but it can’t offer permanent storage without workarounds – and even then, the workarounds tend to have drawbacks and catches making your NFTs unsafe to store. If it’s not stored on an incentivized blockchain, it’s more like the cloud.
Having an NFT stored on Arweave is the answer for the long-term since it provides permanent storage without the monthly fees that would make it so that you technically just rent your NFT from the storage provider. Having this option makes NFT creators (and collectors) opt for Arweave as the safer solution to sell and store art without the risk of 404s.
